You guys may remember me as chrisanja. Now, 5 bagger.
I've been in DNDN and ARNA recently, and you may know I like big risk / rewards (Anthracite Capital was a bust).
Fourcents. You hit it right on the head. FnF literally have saved the mortgage market and real estate industry in their usage by the US govt. No one else would have been lending, and not have some big profit motive - the banks certainly weren't.
*if* FnF were allowed to raise fees and not lower them through the past few years, they would not be in such debt... any bank would have.
Your 'calculation' could use some further analysis to pinpoint, but yes, the trillions of mortgages do not require much of a BP tweak to allow for a big number - like $35B a year in profit.
GM is squacking about the fed ownership; AIG is clearing the books, and soon, it will be FnF to be a private company, too. Sure, they may get push-back, but the expedient thing is to get the taxpayer out of investments. When FnF continue to be cash cows, and continue to beat the pants off of competition, it will be apparent.
6 year plan here - $25 for the .88 is a good return.
chrisanja (.88 although my most recent purchase was 12k of FMCKJ for .88)
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